The Wage Effects of Foreign Acquisition of Chinese Privately-Owned Enterprises

DOI

10.2991/assehr.k.201023.034How to use a DOI?

Keywords

Foreign Direct Investment, Firm Productivity, Spillovers, Emerging countries

Abstract

This paper focuses on magnitude of the short-run effect of foreign takeover of Chinese privately-owned enterprises in the manufacturing industry and assesses its effect on the average wage based on the firm-level data in the period 2005-07. Using a combination of propensity score matching and difference-in-difference framework, we quantify the causal effect of foreign takeover on average wage level by pairwise matching the acquired firms with domestic firms along similar characteristics (size, debt, location, age, etc.). Our findings suggest no evidence of a wage increase in the acquired firms during the first two years after the foreign takeover. Rather, the wage differential observed in the literature may stem from inherent better performance that makes the firms more attractive to foreign acquisition.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Han Zhong
PY  - 2020
DA  - 2020/11/06
TI  - The Wage Effects of Foreign Acquisition of Chinese Privately-Owned Enterprises
BT  - Proceedings of the 2020 5th International Conference on Modern Management and Education Technology (MMET 2020)
PB  - Atlantis Press
SP  - 171
EP  - 179
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.201023.034
DO  - 10.2991/assehr.k.201023.034
ID  - Zhong2020
ER  -